The next wave of servicing regulation is coming – Are you ready?

Join this webinar to learn what servicers need to know about recent and upcoming servicing compliance regulations and strategies experts are implementing to prepare for servicing regulatory audits.

In a purchase market, rookie LOs may struggle

Rookie LOs in 2020 could ride the refi wave and rack up a hefty monthly paycheck without Herculean effort. But these days, they'll have to sing for their supper.

Logan Mohtashami on trends in forbearance exits

In this episode of HousingWire Daily, Logan Mohtashami discusses several hot topics in the housing market, including recent trends in forbearance exits and future homebuyer demand in the midst of inventory shortages.

Natural disasters and forbearance: What borrowers and mortgage servicers need to know

With a rise in natural disasters, including wildfires, hurricanes, floods, tornadoes and mudslides. The mortgage industry needs to be proactive in examining programs to help borrowers recover.

Politics & MoneyReal Estate

Are we back to a normal housing market?

The inventory data confirms it, which should be a good thing

Housing Market Crash image

In the last few months in my articles for HousingWire, I have written that monthly supply has been rising and that this increasing supply was the most critical metric for the housing market, specifically the new home sales market.

According to the recent Census report, the three-month average is now at 5.53 months, which puts inventory right back into the range we had in the previous expansion.

Rule of thumb always with a three-month average:

— 4.3 months and below is a good market for the builders
— 4.4 to 6.4 months is an ok market for the builders; they will build as long as new home sales are growing
— 6.5 months and above, the builders will pull back on construction

Remember, having models keeps you in line and check with the data and the new live variables. This was a significant factor in the America is Back recovery model written April 7, 2020, which the NBER has now declared when the recession ended.

From Census: For Sale Inventory and Months’ Supply: The seasonally‐adjusted estimate of new houses for sale at the end of June was 353,000. This represents a supply of 6.3 months in the housing market at the current sales rate.

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